Berlin Packaging enters agreement to acquire All-Pak

By Katie Nichol

- Last updated on GMT

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US-based Berlin Packaging has entered into an agreement to acquire fellow packaging supplier All-Pak in a move that will result in combined annual revenues of almost $500m.

Both companies supply packaging to a variety of industries including cosmetics and personal care, with Berlin Packaging being a prominent supplier of containers and closures in metal, plastic and glass.

The proportion of combined revenues that come from cosmetics and personal care packaging is 20 percent, Thor Valdmanis, a representative of Berlin Packaging told

David Tayeth, a managing director at Investcorp, of which Berlin Packaging is a portfolio company, said in a statement that the acquisition is expected to lead to long-term growth.

“This is a highly compelling combination of two companies that on their own have shown a remarkable ability to achieve consistent growth despite challenging market conditions. Together, Berlin Packaging and All-Pak are perfectly aligned to expand in a highly fragmented industry,” ​he said.

Expanded geographical footprint

The deal is expected to be finalized at the end of February 2010 and will result in an increase in both geographical footprint and product range, according to the two companies.

The combined company’s headquarters will be located in Chicago and there will be over 40 sales offices and warehouses across the US and Puerto Rico, with a greater presence in Eastern US in particular.

The opportunity to target a broader number of both customers and prospects with a bigger range of products is also expected to translate into increased business for suppliers of the two companies, (of which there are over 600 in the fields of glass, plastic and metal packaging).

Existing customers are also expected to benefit, as a broader range of services will also be offered, including custom packaging design, international sourcing, assembly and supply chain optimization.

Acquisitions within the industry

This acquisition follows several other acquisitions in the packaging industry that have recently been made in the US.

Pretium Packaging merged with PVC Container Corporation, the parent company of Novapack, and private equity firm Asparron Capital acquired the jars and closures assets of Cosmetics Specialties (CSI-Cosmolab).

In addition, Burt Rigid Box recently entered into a sales-based agreement with Plaza Packaging, continuing its service to the cosmetics industry which has seen it produce packaging for Estée Lauder, Burt’s Bees and Coty.

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